recyle the e-waste-t

© 2002 Redemtech, Inc. The Enterprise Solution to Technology Recycling™

The 3 Immutable Laws of eWaste Management, and Other Recycling

Truths

Presented toThe Federal Network for Sustainability

By Robert Houghton


The 3 Immutable Laws

Best use is highest use. Everything is hazardous. Risk trumps cost.

Working units provide the greatest aggregate benefit—financial, social, environmental--if reused as working units.

Circuit boards, batteries, and other components contain heavy metals and various hazardous materials.

Confidential data and software licenses must be secured.

Parts harvesting facilitates economic repair of low value systems.

Hazardous content is not labeled.

Environmental responsibility should extend to the final disposition.

De-manufacturing and materials recycling should be a last resort.

Even relatively inert materials may be hazardous if handled improperly.

Responsible management and risk mitigation requires a comprehensive and detailed audit trail.

eWaste Management


Recycling Truths

a. Centralize (process)

b. Sanitize (data)

c. Optimize (value)

d. Scrutinize (disposition)

e. Analyze (audit trail)

5 Essential eWaste Best Practices


Sanitize

• Physical security• Automated erasure• Systematic verification• Audit Trail• OS & bios independent• Special procedure for

servers and arrays• Quality control audit

Failsafe Data SecurityBest PracticesTestimonial

“Redemtech showed the lead in data security…audit trails…and reporting capabilities.”

Judi HuittBP Amoco

Data Security Flaws Revealed•Infraworks Sanitizer•East-Tec Disk Sanitizer•Norton WipeInfo•NTI Diskscrub•Ontrack Data Eraser•Wipe Clean

“Redemtech Data Erasure was the only application to successfully overwrite all hard disk sectors on each of the six PC configurations under test.”

http://etestinglabs.com/special/redemtech_report.asp


Optimize--Reuse

“We took a problem that nobody wanted to deal with and now our CEO is on the front page of the Birmingham paper giving away computers to needy kids. It is a great program and we continue to use it.”

Testimonial

Ken Livesay, CIOHEALTHSOUTH

Eco

nom

ic V

alue

Social Value

Redeploy

Donate

Employee Sale

Reuse Options

Refurbish and Reuse•Web Inventory•Testing•Software Imaging•Repair•Upgrade•Cleaning•Repackaging


Optimize--Remarket

Hig

hest

Tur

n

Highest Value

Refiners

Parts

International

End User

Wholesale

Auction

Value Recovery•Diversified channels.•Optimal turn and price.•Revenue share model improves return.•Market makers need high volume.Web

Secondary MarketTestimonial

“Sell as quickly as possible so you can get some resale value…if you stack them in your closet, if you leave them there for two months, that could be the difference between receiving a check and paying an invoice.”

Mike BowmanVerizon Wireless


Optimize--Recycle

Testimonial

“Pay attention to what happens to materials going out your back door…Assess your practices… You can play ‘regulatory roulette’, but if you lose, you lose in a big way.”

Steven RowePreston, Gates & Ellis

Legal•Compliance with all Federal, State, and Local laws.

•Waiver of Liability issued with each audit indemnifies the customer.

Environmental•Electronic scrap is recycled, never landfilled.

•Disposition of materials is controlled and documented.

Social•End materials refiners are vetted for environmental and labor practices.

•Usable systems are sold or donated rather than recycled.

Financial•Recycling is a last resort. “Highest” disposition is always sought.

•Service on valueless product is limited to risk mitigation requirements.

Economical, Responsible, and Fully Documented


Total Cost of Ownership

15%

80%

5%• Recycling equals 5% of

TCO, 1/3 as much as purchase.

• Ad hoc End-of-Life programs increase cost and risk.

• End users will increase focus on EOL to reduce TCO.

Use

Purc

hase

Total TCO$5236 per yearIDC, August, 1998

Rec

ycle


Disposition Costs

050

100150200250300350400450

Dis

posa

l

Red

eplo

y

Empl

oySa

le

Dea

ler

Sale

Don

ate

Internal Costs of DispositionTestimonial

“Staff productivity increased

…we gained better

control of our idle assets.”



00.10.20.30.40.50.60.7

1 5 9 13 17 21 25 29 33 37 39 41 45 49Period of Ownership (months)

Ass

et V

alue

Plan for Negative Residuals

Break-Even

Disposition Cost

NegativeResidual

Testimonial

“Staff productivity increased

…we gained better

control of our idle assets.”



Low Price--High Performance Lowers Residual Values

New Systems

PricePerformance

Used Market Price

ShortenedEconomic Life

Time

Price/PerformanceImprovementand Economic Life

Example:Used Market Valuesof IBM’s Large Systems

9672G1-G5

ShortenedEconomic Life

6 years 5 years 3-4 years

IBM System

3090

E S JH0

H5

9021H2

US$per MIPS

90 92 94 96 98 00100

1,000

10,000

100,000


Scrutinize

Know Where It Goes.

1. Corporate policy will require end-to-end control of materials streams.2. All points in the disposition stream must be fully vetted.3. Low commodity values require elimination of middlemen.

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-8-6-4-20246

US RecyclingFBN Recycling


State of the Industry

Legal•US liabilities for data erasure and environmental compliance are increasing.

•Export restrictions on e-waste are non-existent.

Environmental•Significant amounts of electronic scrap are in storage—a future liability.

•Asset management and and audit trail are the best environmental protection.

Social•Exports of e-waste place workers and environment at risk.

•A significant need still exists in the U.S. to bridge the “digital divide” with older systems.

Financial•Equipment values are often exceeded by the cost of disposition.

•Failure to budget for recycling expense leads many to dubious practices.

Testimonial

“Redemtech showed the lead in data security…audit trails…and reporting capabilities.”

Judi HuittBP Amoco


The Enterprise Solution to Technology Recycling™

www.redemtech.com

http://www.redemtech.com/



recyle the e-waste-t

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